Merchant Banking and Financial Services, III Semester (MBA), UNIT-1
Definition of Financial Services Industry - Development and Activities
The development of a sophisticated and matured financial system in India, especially in the era of Liberalization, Privatization and Globalization (LPG), led to the emergence of a new sector known as Financial Services Sector. Financial services sector plays a significant role in any modern economy. Its objective is to act as intermediary and facilitate financial transactions of individuals and institutional investors. The bundle of institutions that make up an economy’s financial system can be seen as “the brain of the economy”, providing the bulk of the economy’s need for many functions.
Meaning of Financial Services
The term financial service in its broader sense
refers to “mobilizing and allocation of savings’’. It is identified as all
those activities involved in the process of converting savings into
investments. Financial services also include Financial Intermediaries
such as, Merchant Bankers, Venture capitalists, Commercial banks, Insurance
Companies etc.
Definition of Financial
Services Industry
It may be defined as “the collection of
organizations which intermediate and facilitate financial transaction of
individual and institutional investors resulting from their resources
allocation activities through time.”
